As I mentioned in step #5 of the ten steps to financial freedom, you should first and foremost move towards reducing your housing expenses. Your primary residence is an expense, not an investment; therefore, the less you spend on such an expense, the more money you can allocate towards savings and investments. With that said, there are some ways we can strategize around our primary residence and potentially additional real estate investments. This guide is an attempt to address such an idea.
This guide has three parts. This page will have an introduction to each along with a link to a more detailed analysis of each part.
Part 1: Primary Residence Strategy
When it comes to your primary residence, I believe you should have three components to your strategy assuming you own and not rent. For more information on whether you should own or rent, click here. The three components are to keep your mortgage and living costs low, differentiate your property and add value, and lastly pay off your mortgage.
For additional details on the three components and the overall complete strategy, click here: Primary Residence Strategy
Part 2: Second Property Strategy
The second part of the real estate guide focuses on a second piece of real estate or an investment property. Choosing a second property to invest in is a complex topic. It can depend on many factors including whether or not you still owe money on your primary residence, the business plan of the investment, what type of funding, etc.
For additional details on the second property / investment property strategy, click here: Second Property Strategy
Part 3: Commercial and Other Real Estate Investments
Lastly, I want to address the possibility of investing in commercial real estate or other forms of cash flowing real estate. This can range from managing a duplex to a major office building. This is a fairly advanced strategy and requires experience and significant capital potentially.
For additional details on the commercial and other real estate strategy, click here: Commercial Real Estate & Other Cash Flowing Real Estate
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